The hedge fund's hefty price tag and quick demise angered Citigroup employees and investors, especially as Citigroup's overall financial condition worsened. Mr. Pandit reaped at least $165 million from the deal, while Mr. Ramakrishnan's take was tens of millions of dollars, a person familiar with the matter said.

As Mr. Ramakrishnan, Old Lane Chief Financial Officer Jonathan Barton and other executives consider life after Old Lane, they have fielded inquiries about possibly running alternative-investment businesses, according to another person familiar with the situation. The Old Lane group also is toying with the idea of launching a small hedge fund.